Industry executives told FCW that the seemingly never-ending price increases have impacted the business in a number of significant ways. For instance, rising wood prices resulted in some consumers turning to lower priced imported product. The average import prices were $1.84 per square foot in 2013, compared to an estimated $2.28 per square foot for domestically-produced products, according to Catalina Research.

“As raw materials have continued to rise, domestic manufacturers will need to look at new ways to increase value and reduce costs,” said Chris Whisenant, hardwood category manager, Shaw Floors.

According to Dan Natkin, director of wood and laminate business at Mannington Mills, raw material increases in the U.S. have allowed importers to see gains in both solid and engineered wood flooring. “Solids had been a non-factor out of China but all of a sudden it became a factor and engineered is also seeing gains,” he said.

Catalina also reported that import shipments increased by 27.3 percent in 2013, and imports’ square foot share increased to about 46.9 percent, up from 38.6 percent in 2012.

Imports are rising, according to Ron Oliver, vice president of sales and marketing at Hallmark Hardwoods, because importers are taking advantage of new innovations and technology. He said importers are able to provide both fashion and quality to the market.

Dick Quinlan, senior director of hardwood products, Unilin, noted, “Imported engineered products have come down in price versus solid which moved up so we expect to see engineered imports continue to be a big part of the hardwood market. We expect to continue to see solid business grow but it will remain a domestically produced product because moving solid lumber globally is more expensive,” he said.

Suppliers’ profitability has also been impacted, explained Milton Goodwin, vice president of product management hardwood at Armstrong. “The common refrain is that profitability was down in 2013 while the top line was up,” he said.

Michael Martin, president and CEO of the National Wood Flooring Association (NWFA), noted that lumber shortages have been a concern for a while now. And, as a result, many manufacturers have looked to find ways to maximize their lumber yields.

“In some cases, this means they have evolved from a traditional solid wood flooring manufacturer to incorporating engineered wood flooring into their product lines,” he said. “This gives them more yield from the lumber they are buying, which helps absorb some of the increased supply costs,” he said.

Price increases are also encouraging builders and consumers to turn to other flooring options, noted Luc Robitaille, vice president of marketing at Boa Franc, makers of the Mirage brand. “Other floor coverings that imitate a wood look (ceramic tile, LVT, laminate) and also have a lower price point than hardwood may gain market shares because of that.”